The Deal Analysis Checklist

The math to run on any listing before you get attached to it. This is exactly what Prop Hound calculates automatically for each listing it screens, every night, laid out here so you can see what's actually behind the numbers.

• Verified the rent estimate against real comparable listings nearby, not just the listing's own number. Prop Hound pulls this automatically, including real comparables, for every listing it screens.
• Confirmed the real property tax, from the county assessor or a local agent, not copied from the listing.
• Got a real insurance cost for this specific address, not a percentage estimate.
• Included closing costs and any rehab budget in my total cash invested, not just the down payment.
• Included a vacancy allowance in the numbers, even for a strong rental market. Prop Hound builds a vacancy allowance into every calculation by default, adjustable in your financing profile.
• Included a realistic repair and maintenance reserve, not just the mortgage payment. Prop Hound builds a maintenance reserve into every calculation by default, adjustable in your financing profile.
• Set aside a separate CapEx reserve for big-ticket replacements (roof, HVAC, water heater), not the same pool of money as routine maintenance.
• Included property management cost in the numbers, even if I plan to self-manage. My time isn't free either. Prop Hound builds this into every calculation by default too, adjustable in your financing profile.
• Calculated cash-on-cash return, not just monthly cash flow. Cash-on-cash accounts for how much cash I actually put in. Prop Hound calculates this automatically for each listing it screens.
• Calculated cap rate. It doesn't depend on financing, so it's the number to use comparing deals with different down payments or loan terms. Prop Hound calculates this automatically for each listing it screens.
• Calculated DSCR if using a loan. Below 1.0 means the property's own rent doesn't cover its own debt payment. Prop Hound calculates this automatically for each listing it screens.
• Calculated break-even ratio: the share of rent that goes to costs and loan payments. At 85%, rent can only fall about 15% before the deal loses money. Prop Hound calculates this automatically for each listing it screens.
• Checked the 1% rule and gross rent multiplier as quick sanity checks, not the final decision. Prop Hound calculates both automatically for each listing it screens.
• Stress-tested the numbers: confirmed the deal still cash flows at 2 months of vacancy or rent 10% below the estimate, not just the best-case scenario.

Longer read: How to calculate cash-on-cash return.